XRP To Repeat Its 2017 Playbook? Analyst Forecasts 1,250% Expansion

Overview

XRP is currently testing a significant support level, with analysts suggesting that it may be on the verge of a substantial expansion reminiscent of its performance in 2017. The cryptocurrency has exhibited a pattern that could indicate a potential trend reversal, raising interest among market observers.

Recent Price Movements

On a recent Friday, XRP hit a 12-day low, falling to approximately $2.02 before experiencing a rebound. For nearly two weeks, the altcoin has fluctuated within the $2.05 to $2.35 range, primarily trading in the mid to lower sections of this price bracket. According to analyst Sjuul from AltCryptoGems, XRP is showing signs of improvement, especially following a bullish market structure break characterized by a higher high. Previously, XRP had been on a downward trend since August, consistently printing lower lows and lower highs. The recent breakout marks the first higher high in months, suggesting the possibility of a trend reversal.

Despite this positive development, Sjuul emphasized the importance of maintaining the bullish structure and forming a higher low in the event of a dip. This caution reflects the need for XRP to solidify its upward momentum.

Analyst Comparisons to 2017

Market observer ChartNerd has drawn parallels between XRP’s current behavior and its performance in 2016-2017. The analyst noted that XRP is mirroring a similar pattern that led to a significant rally towards its previous all-time high. In the past, XRP experienced a multi-year symmetrical triangle formation breakout followed by an ABC consolidation, leading to a remarkable 1,500% increase. Currently, XRP appears to be in Wave C of its ABC consolidation, which has raised speculation about its future price movements.

While ChartNerd highlighted that a deeper Wave C retracement could occur if the $1.80 support level is breached, the analyst also pointed out that the repetition of the cycle formula indicates potential expansion for XRP, with targets ranging from $8 to $27.

Cautionary Notes for the Future

Despite the potential bullish outlook, ChartNerd issued a warning regarding the upcoming months. According to the analyst, XRP has a limited timeframe—just over two months—to invalidate a bearish Heikin-Ashi candle formation on the three-month chart. If the current trend continues and the candle closes negatively, it could signal a major correction. The analyst recalled past instances where similar patterns preceded significant downturns in XRP’s price, including occurrences in 2014, 2018, and 2021.

As XRP approaches the end of the quarter, there is increasing pressure to close positively to avoid a deeper correction that could last for several months.

From author

The current situation surrounding XRP is a blend of cautious optimism and historical caution. While some analysts see potential for significant gains reminiscent of past performances, the looming threat of a bearish market structure cannot be ignored. As XRP navigates this critical period, the next few months will be pivotal in determining its trajectory.

Impact on the crypto market

• Analysts are observing potential bullish patterns in XRP that could influence market sentiment.
• A significant price movement in XRP could have a ripple effect on the broader altcoin market.
• The historical parallels drawn by analysts may attract speculative trading among investors.
• A bearish closure in the upcoming months could lead to a broader market correction, impacting investor confidence.
• The attention on XRP may increase as it approaches critical support levels, drawing in both retail and institutional investors.